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HMRC internal manual

Employment Income Manual

The benefits code: meaning of 'by reason of the employment'

Part 3 Chapters 3 and 10 ITEPA 2003

To be chargeable under the special rules in the benefits code (EIM20007) expenses payments and benefits have to be made or provided ‘by reason of the employment’. Part 3 Chapter 3 deals with expense payments and Part 3 Chapter 10 with benefits.

There are different rules depending on whether expenses payments and benefits are paid or provided by the employer or by another person. For this purpose an employer is deemed to have provided a benefit if it has borne the cost of provision (EIM21220).

If the employer has paid expenses or provided a benefit see EIM20502.

If they are paid or provided by someone other than the employer see EIM20503.